WGU D196 Exam Questions Correctly Answered New Update

WGU D196 Exam Questions Correctly
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Answered New Update |\ |\




Accounting plays a vital role in the decision-making |\ |\ |\ |\ |\ |\ |\ |\



process. Which action is the first step in the decision-
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making process? - CORRECT ANSWERS ✔✔Identify the
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issue.


1/1
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The money that a company needs to buy its land, pay its
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employees, and buy its supplies is called capital. What |\ |\ |\ |\ |\ |\ |\ |\ |\



are the potential sources of capital for a business? -
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CORRECT ANSWERS ✔✔Investors, creditors, and retained
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business earnings |\




Investors, creditors, and retained business earnings are
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all common sources of capital for a business.
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Which primary area of accounting generates reports for
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internal users? - CORRECT ANSWERS ✔✔Management
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accounting generates reports for internal users, such as |\ |\ |\ |\ |\ |\ |\ |\



budgets and cost analyses. |\ |\ |\




Which group uses financial information to evaluate
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whether a company will be able to repay a loan? -
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CORRECT ANSWERS ✔✔Lenders |\ |\

,Which of the primary financial statements reports the
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resources, obligations, and owner's equity of a company?
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- CORRECT ANSWERS ✔✔The balance sheet reports the
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resources of a company (the assets), the company's
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obligations (the liabilities), and the owners' equity, which
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represents the difference between what is owned (assets)
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and what is owed (liabilities).
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What is the role of the IASB in regulating accounting
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standards? - CORRECT ANSWERS ✔✔Establish |\ |\ |\ |\ |\



international accounting standards |\ |\




The IASB establishes worldwide accounting standards.
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The IASB is a private organization based in London.
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Currently, the IASB does not have legal authority to set
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accounting standards for U.S. companies, although the |\ |\ |\ |\ |\ |\ |\



SEC does allow the use of IASB standards for non-U.S.
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companies with shares traded on U.S. stock exchanges. |\ |\ |\ |\ |\ |\ |\ |\



The IASB is a standalone organization (overseen by a
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Board of Trustees); it is not under the jurisdiction of the
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SEC, the European Union, the United Nations, or any
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other governmental body. The IASB members represent a
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broad business constituency including auditors, corporate
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accountants, analysts, and even accounting professors.
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What group of people make up the FASB? - CORRECT
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ANSWERS ✔✔People from a variety of business-related
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backgrounds

,What is the role of the GASB in setting accounting
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standards? - CORRECT ANSWERS ✔✔The GASB is a |\ |\ |\ |\ |\ |\ |\ |\



private-sector organization that establishes accounting |\ |\ |\ |\ |\



and financial reporting standards for U.S. state and local
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governments.


In what way do accountants have an economic incentive
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to conduct themselves ethically? - CORRECT ANSWERS
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✔✔The value of the information produced by accountants
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is related to the confidence that users have in the
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reliability of that information. |\ |\ |\




How is it possible for an accountant to intentionally
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deceive financial statement users and yet still technically
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be in compliance with generally accepted accounting
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principles (GAAP)? - CORRECT ANSWERS ✔✔There is |\ |\ |\ |\ |\ |\ |\



flexibility inherent in the assumptions underlying the |\ |\ |\ |\ |\ |\ |\



preparation of financial statements. |\ |\ |\




Your boss approaches you with a concerning letter from
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the IRS and asks you to explain the role of the IRS in
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regulating accounting standards. Based on the role of the |\ |\ |\ |\ |\ |\ |\ |\ |\



IRS, what could be the problem detailed in the letter? -
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CORRECT ANSWERS ✔✔The company has not filed its |\ |\ |\ |\ |\ |\ |\ |\



taxes in accordance with the law.
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, Anika is considering investing in a tech company that is
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known for developing smart home appliances. Before
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investing, Anika first wants to ensure that the company's |\ |\ |\ |\ |\ |\ |\ |\ |\



past financial performance has been satisfactory and that
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the company manages its cash flows well. What type of
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accounting information would provide this evidence for |\ |\ |\ |\ |\ |\ |\



Anika? - CORRECT ANSWERS ✔✔Financial reports
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Alliah Company just released its public accounting data
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for 20X9. Which user of accounting information will
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monitor this data to ensure that the company is providing
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sufficient information for investors? - CORRECT ANSWERS
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✔✔Government agencies
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A new product line manager approaches the accounting
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department in order to understand the past performance |\ |\ |\ |\ |\ |\ |\ |\



of the product line he has been asked to manage in the
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future. Which role of accounting involves obtaining and
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using financial information to determine the financial
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health and performance of a business or product line? -
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CORRECT ANSWERS ✔✔Evaluation |\ |\




You read in the newspaper that a local company you are
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familiar with has been found guilty in court of publishing
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financial statements that are false and misleading to|\ |\ |\ |\ |\ |\ |\ |\



users of those financial statements. In this situation, what
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could the American Institute of Certified Public
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Accountants (AICPA) do in response to the accountants |\ |\ |\ |\ |\ |\ |\ |\